If you’re purchasing a new home and thinking about getting title insurance in Maryland to protect your new investment, you may have asked yourself the following question: Should I get an inflation rider? Or, like a number of homeowners, you may not have considered this title insurance add-on. Learn more about inflation riders in this week’s blog.
Title Insurance in Maryland: Should I Get an Inflation Rider?
What is an inflation rider?
An inflation rider is an addendum to your Maryland title insurance policy. The rider increases the total amount of insurance cover if your home’s value goes up as a result of inflation.
Why should I consider getting an inflation rider?
Inflation has been a constant and consistent component of the economy for a long time, so it’s a safe bet to assume that inflation will continue to increase over the period of your homeownership. Your title insurance policy covers up to the amount of the purchase price of the home. Purchasing an inflation rider allows you to account for any increase in your home’s value as a result of inflation and gives you added peace of mind against a rising inflation rate.
How do I get an inflation rider?
When you purchase title insurance in Maryland, you simply have to ask the title insurance company about an insurance rider. The company may offer different terms for various riders so you can find the one that best fits your needs.
You will have to pay an additional fee for the rider, which will depend on the amount of coverage you already have. An average coverage amount for an inflation rider is 120% of the home’s value at the time you purchased the policy.
Are you interested in learning more about title insurance in Maryland and how it can protect your home from claims on your title? Contact Colony Title Associates!
Real Estate Closing Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.